DENVER – Colorado’s Health Care Future issued the following statement today following the state House Health & Insurance Committee’s hearing to consider HB21-1232, which would create a new state government-controlled health insurance system, also called the state government option: 

“Members of the Colorado House Health & Insurance Committee heard testimony today from a large and diverse group of Coloradans opposed to creating a new state government-controlled health insurance system. After many hours of testimony from doctors, providers, workers, stakeholders and voices across Colorado repeatedly expressing serious concerns about the proposed state government option that could increase costs and put politicians in control of Coloradans’ health care, the bill sponsors decided to pause and reconsider the bill ahead of next week’s scheduled meeting. The steady drumbeat of Coloradans warning of negative consequences and unaffordable costs of their proposal raised serious questions for the committee ,” said Colorado’s Health Care Future spokesman Tyler Mounsey.  

“Lawmakers should consider the negative consequences and unaffordable costs of this proposal, including the finding that it could financially impact hospitals and disproportionately hurt access to care for racial and ethnic minorities. A recent report by FTI Consulting found a Colorado state government option could financially impact 78 percent of all Colorado hospitals, totaling $112 million in losses annually, and threaten access to care for Coloradans, especially among members of racial and ethnic minority communities. Over 40 percent of hospitals that could be at higher risk for closure disproportionately serve Black, Latinx, and Native American residents, the report finds.”

“The report is the latest evidence that Colorado lawmakers should slow down, weigh the facts and work together to build on and improve what’s working in health care instead of starting over with an unaffordable, one-size-fits-all state government option,” concluded Mousney.

Key Findings:

• During this critical time, the state government option could financially impact 78 percent of all Colorado hospitals.
• Today, racial and ethnic minorities in Colorado comprise one-third of the state’s total population, yet 40 percent of Colorado hospitals that could be at higher risk for closure under the state government option disproportionately serve these communities.
• Hospitals fill a critical gap in care for Black and Hispanic/Latinx Coloradans, many of whom already contend with significant disparities in health status, access, and outcomes, and must rely more heavily on hospital services to meet basic health care needs.
• Native Americans in rural areas could also see their access to care threatened. This builds on a previous report, which found 23 rural hospitals could be at increased risk of closure under the state government option.